The business model of selling Equipment-as-a-Service (EaaS) has been around for a while: Rolls-Royce introduced its Power by the Hour program, pricing their Viper aircraft engines based on ﬂight hours, back in 1962. More recently, the rapid rise of sensors and the advent of machines and devices connected to the Internet of Things has made it more feasible to deploy advanced pricing models based on time, usage, output or ﬁnancial results. Subscription models offer clear advantages for buyers, who can access expensive equipment without a large, upfront capital outlay, while also sharing risk with the vendor. Sellers also beneﬁt by capturing more of the total value created by the equipment.
Sounds like the perfect match for a restarting economy after the COVID-19 shock? Doesn’t it?
We at Findustrial think that the next decade will be known as the machine-outcome economy where companies in the B2B sectors will start to pay for outcome and not for ownership. Especially in uncertain times like this where the economy slowly starts to come back after the COVID-19 shock we expect a tremendous amount of companies postponing relevant investments because of a lack of market visibility.
Wouldn’t it be great if we could kick start the economy with a business model that reinvents the idea of asset ownership and significantly reduces the investment hurdle to get started again.
In the next 6 months we at Findustrial are on a mission.
We identified that the level of knowledge and literature coverage about this topics is very low and hence we at Findustrial are on a mission to take a deeper and more sophisticated look behind the scenes of EaaS and Pay-per-use business models. Hence, we defined the Findustrial Pay-per-Use Content Framework which we will share here on LinkedIn and as well on our Blog over the next 6 months.
Stay tuned for the upcoming articles.